Which of the following statements is true in relation to IV estimation? A) Instrumental variables are...
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Which of the following statements is true in relation to IV estimation? |
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A) Instrumental variables are used to replace variables that are highly correlated with other explanatory variables. B) IV estimation is a way of tackling heteroscedasticity. C) An instrumental variable should not be correlated with the endogenous variable. D) None of the above. |
Homework Answers
Solution
Which of the following statements is true in relation to IV estimation?
A) Instrumental variables are used to replace variables that are highly correlated with other explanatory variables
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Which of the following statements is true in relation to IV
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